Agricultural News
Smithfield Foods Shareholders Approve Strategic Combination With Shuanghui International
Tue, 24 Sep 2013 12:37:53 CDT
Smithfield Foods, Inc. (NYSE:SFD) announced today that the shareholders of the company voted overwhelmingly to approve the proposed strategic combination with Shuanghui International Holdings Limited.
At a Special Meeting of Smithfield shareholders held today, more than 96% of the votes cast were voted in favor of the transaction, which represents approximately 76% of Smithfield's total outstanding shares of common stock as of the record date for the Special Meeting.
"We are pleased with the outcome of today's vote and thank all of our shareholders for their support," said C. Larry Pope, president and chief executive officer of Smithfield. "This is a great transaction for all Smithfield stakeholders, as well as for American farmers and U.S. agriculture. The partnership is all about growth, and about doing more business at home and abroad. It will remain business as usual - only better - at Smithfield, and we look forward to embarking on this new chapter."
The vote ends months of debate over the deal's implications in terms of food safety and fair trade. China limits foreign investments in many of its industries.
The $7.1 billion deal is expected to close Thursday. It will be the largest takeover of a U.S. company by a Chinese firm.
The takeover comes at a time of food safety problems in China, some involving Shuanghui. The company is the largest shareholder of the country's largest meat processor. It also owns food processing and logistics enterprises.
Smithfield is the world's largest pork producer and Shuanghui is the largest Chinese pork producer. Officials of the companies say the takeover will increase pork exports to China and result in greater food safety for Shuangui.
Both companies say the merger won't result in major changes to Smithfield's management or staff.
Under the terms of the agreement Smithfield shareholders will receive $34.00 per share in cash for each share of Smithfield common stock that they own. Upon closing of the transaction, Smithfield's common stock will cease to be publicly traded and the company will be a wholly-owned subsidiary of Shuanghui International Holdings Limited, operating as Smithfield Foods. Subject to customary closing conditions, the company expects to complete the combination by September 26, 2013.
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